Research Project
Grant-in-Aid for Research Activity Start-up
In this project, we empirically study the transmission of exogenous shocks hitting financial institutions to their client firms. Using a unique data set accounting for financial relationships between firms and financial institutions, we found that the tightening of monetary policy led to the contraction of loan provision made by banks with weak balance sheet conditions (e.g., low liquidity). We also found that during the downturn in stock markets, venture capital funds managed by venture capital firms with smaller investment experience reduced their fund provisions to firms more largely. Given that these results are confirmed in the estimation taking into account the effect associated with firms' demand for loan and fund, we confirm that exogenous negative shocks hitting financial institutions are transmitted more largely to their client firms through financial institutions with weaker balance sheet condition and smaller investment experience.
All 2015 2014
All Journal Article (3 results) (of which Acknowledgement Compliant: 2 results) Presentation (2 results) Book (1 results)
RIETI Discussion Paper Series
Volume: 15-E-141 Pages: 1-31
Volume: 15-J-009 Pages: 1-22
Volume: 14-E-026 Pages: 1-34
